Do You Have an October/November Settlement in NJ? Don't Be Caught Off Guard!
A quick reminder to real estate professionals and consumers alike: This time of year in New Jersey many property taxes are "updated", potentially causing the 2008 tax estimate that is showing on the MLS to be inaccurate. Sometimes the change is so small a buyer doesn't even notice. Sometimes a property's taxes could go up by $1,000 or more per year. It depends on the home you are buying.
Do not listen to rumors or leave it to chance.
Have your real estate agent and title company do all the homework they can to find out what those taxes will be at the settlement table. Over the last month, I've seen no less than 4 closings where taxes where higher at settlement. In one case it was rather upsetting to the buyer who was already doing a 2/1 buydown so that she could afford the payment. On another occasion the buyer's taxes were about $90 more a month. That is a BIG DEAL on a $165,000 purchase!!
So if you are in New Jersey and are settling on your new home in October or thereafter, be forewarned.
Feel free to contact Steve with any questions (see below).
Steve Kappre is a Mortgage Planner with Treasury Mortgage, a subsidiary of Aurora Financial Group. For more info check out:
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Contact Steve Kappre directly: 856-419-3561 | Subscribe to Steve's blog via e-mail